41–50 of 148 posts
I'm guessing a ton of new companies will pop up overnight in India, Taiwan, Vietnam, S Korea that simply purchase components from China and resell them to the US. Not exactly helping anyone.
If you start building a factory in the US now, it will take years and you’ll be paying high tariffs on the equipment, high tariffs on the raw materials, high wages for unexperienced workers… And all of this in a political environment so unstable that your investment might be pointless six months from now if/when the president flip-flops again.
World-class industrial strategy.
Ryan Pertersen (Import Genius and now Flexport) said that if these tariffs continue on China, 80% of small and medium-sized businesses that buy from China will go bankrupt. Over 2 million jobs will be lost. He is not the only one calling for a small business Armageddon. The big corporations love it, companies like Apple got exemptions, it's why you don't here them freaking out. Hope Wyze makes it through this, long-t…
Small businesses are 44% of US GDP. Losing even 10% of GDP would be very uncomfortable.
Earlier quoted context omitted.
They said they’re looking to “move out of China,” but that almost certainly doesn’t mean the U.S. Probably India or Vietnam, maybe Turkey or Malaysia.
I have seen this comment a lot and don't understand it. From the U.S.'s point of view there are two goals: increase manufacturing in the States, and reduce manufacturing in China. Even if they don't choose the States, and even if things aren't near-shored, it is still a pretty big win for the administration, no?
As far as I understood it, it was meant to work closely with a lot of east Asias counties to counter the influence of China and to promote trade.
Now the US kinda pissed of a lot of those countries, and china stepped in to trade with them.
Will they have to pay tariffs on the equipment they have to import to manufacture them here?
I doubt they own any part of their manufacturing at the moment. Unless manufacturing already exists in the US (which I doubt here), I don't believe company this size has any chance to move manufacturing to the US
The GamerNexus video already mentioned elsewhere explore those issues: https://www.youtube.com/watch?v=1W_mSOS1Qts.
> https://xcancel.com/WyzeCam/status/1917662183036706849 They’re getting attacked in the replies.
The top voted comments I see are all supportive so far. There are a lot of comments asking why they don’t move manufacturing to Seattle. This theme is common among people who don’t understand how manufacturing works right now: They don’t realize that a product like this has many different parts from different places, down to the dozens of little SMT capacitors. You can’t just move the factory and avoid tariffs becaus…
People simply don't understand the scale and complexity of modern supply chains. By one estimate, it will take $40T to move all of China's existing manufacturing capacity and supply chains to the US, and it will take 20+ years if you're really motivated.
People still think that order goes in and a factory makes the finished goods. In reality, individual parts can move across borders dozens of times before they're ready to be placed into a bigger product.
Heck, I remember reading that Ford cars built in Canada cross the Canada-US border 11 times before they're finished
I'm guessing a ton of new companies will pop up overnight in India, Taiwan, Vietnam, S Korea that simply purchase components from China and resell them to the US. Not exactly helping anyone.
Earlier quoted context omitted.
The executive order came with threats against any country doing that
Yeah and it has no effect because its done by companies not countries. This is gonna continue for a long time. Its an incredible time to be a middle man
It's going to occur, as it already does occur, for all kinds of reasons, but it's not going to be as simple as you make it out to be. There is a limited capacity to perform this work meaning the costs may not even be competitive with the US tariff in the long run.
Earlier quoted context omitted.
Well, we have a front row seat to the shitshow. It will play out in front of everyone to see the results in real time.
And the Death-Cult of Emperor Trump will cheer it every step of the way until they finally realize (entirely too late) that they're gettin' screwed too.
Earlier quoted context omitted.
> can’t just move the factory and avoid tariffs because the parts still come from other places Trump has already started blinking on the China tariffs. It would be madness to move operations in the midst of this chaos—you’d immediately be undercut by cheaper competition.
He’s already said they will reduce the tariffs on China. He insisted there will be some tariffs but 145% is too high and it will come down. A company moving their production anywhere based on what the policy is right now would be foolish because the policy could change in the next 5 mins, but will almost certainly change within minutes if there are empty shelves.